Abstract

Dramatic increases in the capabilities of computers and communication networks, accompanied by equally dramatic decreases in cost, have fomented revolutionary thoughts in the scholarly publishing community. This paper concerns a controlled field experiment to investigate the effects of product bundling and pricing structures for electronic access to scholarly literature. We begin by providing background on the market economics of the publishing business, and describe some important economic problems facing both research libraries and scholarly journal publishers. We then explain how the opportunity provided by electronic access to use innovative bundling and pricing structures offer some hope of easing the library and publisher problems. We then describe our utility-theoretic framework for analyzing the consumer response to the trial conditions, and then briefly survey some related literature on bundling and nonlinear pricing. In the final section, we describe the main features of the experiment, and the rationale behind the design.